Express analysis of enterprise reporting. Express analysis of the company's quarterly reporting. Assessment of the financial condition of the organization - its methods

Introduction

Theoretical basis

1 Concept, meaning and objectives of the analysis of the financial condition of the organization

2 Objectives and methods of financial analysis

3 Analysis of the property status of the organization

4 Analysis of the financial stability of the enterprise

5 Analysis of the organization's solvency

Express analysis of financial condition

1 Assessment of financial stability

2 Assessment of liquidity

3 Estimation of turnover

4 Cost-benefit assessment

Operational analysis

Cash flow statement

List of references

Introduction

In the conditions of market relations, the analysis of the financial condition of the enterprise plays an important role. This is due to the fact that the enterprise, acquiring independence, bears full responsibility for the results of its activities. This responsibility is, first of all, to its shareholders, employees of the enterprise, the bank, financial authorities and creditors.

The financial condition of the enterprise is characterized by a wide range of indicators reflecting the availability, placement and use of financial resources. In the conditions of mass insolvency of enterprises and the practical application of bankruptcy procedures to many of them, an objective and accurate assessment of their financial condition becomes of paramount importance. Determining the financial condition at a particular date helps to answer the question of how correctly the company managed its financial resources during the period preceding this date. The financial condition of an enterprise is determined by the ability to pay off its debts and obligations.

An important role is assigned to analysis in determining and using reserves for increasing production efficiency. It promotes the economical use of resources, the identification and implementation of best practices, the scientific organization of labor, new equipment and production technology, and the prevention of unnecessary costs. Analysis is an important element in the production management system, an effective means of identifying on-farm reserves, the main development of scientifically based plans and management decisions.

To manage production, managers need to have complete and reliable information about the progress of the production process, about the progress of plans. Information is obtained through financial and economic analysis. In the process of analysis, the primary information undergoes analytical processing: a comparison of the achieved production results with the data for the past periods of time, with the indicators of other enterprises and the industry average is carried out; the influence of various factors on the value of effective indicators is determined; shortcomings, mistakes, unused opportunities, prospects are revealed.

Financial assessment is part of financial analysis. It is characterized by a certain set of indicators reflected in the balance sheet as of a certain date. The financial condition characterizes in the most general form changes in the allocation of funds and the sources of their coverage.

The financial condition is the result of the interaction of all production and economic factors: labor, land, capital, entrepreneurship.

The financial condition is manifested in the solvency of an economic entity, in the ability to timely meet the payment requirements of suppliers in accordance with business contracts, to return loans, pay salaries, and make payments to the budget on time.

The first section will be devoted directly to the analysis of the financial condition of the enterprise, its concept, meaning and its purpose, as well as methods of analysis. We will give the concept of analyzing liquidity and solvency, as well as analyzing the financial stability of an enterprise. In the same section, we will look at an indicator called the effect of financial leverage.

In the second section, we will perform the calculation of the analysis of the financial condition of a construction company. At the end of each table, we will draw a conclusion about the indicators, evaluate them positively or negatively for the enterprise.

The third section will be devoted to calculating the effect of financial leverage. In this case, we will use two methods to find it: tabular and analytical.

1. Theoretical foundations

.1 Concept, meaning and objectives of the analysis of the financial condition of the organization

Analysis is understood as a method of comprehensive systematic study of the financial condition of an organization and the factors of its formation in order to assess the degree of financial risks and forecast the level of profitability and capital. Financial analysis allows you to obtain objective information about the financial condition of the organization, profitability and efficiency of its work.

Financial condition refers to the ability of an organization to finance its activities. It is characterized by the provision of financial resources necessary for normal functioning, the expediency of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.

The analysis of the financial condition of the organization is carried out by managers and relevant services, as well as founders, investors in order to study the effective use of resources, banks to assess the conditions for granting a loan and determine the degree of risk, suppliers for timely receipt of payments, tax inspections to fulfill the plan of budget receipts, etc. .d. Financial analysis is a flexible tool in the hands of organizational leaders. The analysis of the financial condition includes the analysis of the balance sheet; analysis of the use of capital and assessment of financial stability; analysis of the organization's solvency, etc.

The financial condition of an organization is assessed by indicators that characterize the availability, placement and use of financial resources. These indicators reflect the results of the economic activity of the enterprise, determine its competitiveness, business potential, and make it possible to calculate the degree of guarantees of the economic interests of the enterprise and its partners in financial and other relations.

The main tasks of financial analysis are:

Based on the study of the relationship between different indicators of production, commercial and financial activity, assess the implementation of the plan for the receipt of financial resources and their use from the position of improving the financial condition of the enterprise.

Predict possible financial results, economic profitability based on the real conditions of economic activity, the availability of own and borrowed resources and the developed models of financial condition with a variety of options for using resources.

Develop specific activities aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise.

One of the functions of the analysis can be called the study of the nature of the operation of economic laws, the establishment of patterns and trends in economic phenomena and processes in the specific conditions of the enterprise.

The next function of the analysis is control over the implementation of plans and management decisions, for the economical use of resources. The central function of analysis is the search for reserves for increasing production efficiency based on the study of advanced experience and achievements of science and practice. Also, another function of the analysis is to assess the results of the enterprise's activities in fulfilling plans, the achieved level of economic development, and the use of existing opportunities. And, finally, the development of measures for the use of the identified reserves in the process of economic activity.

Both external and internal users are interested in studying the financial condition of a particular organization. Internal users include the owners and administration of the organization, external - creditors, investors, commercial partners.

Analysis of the financial condition, carried out in the interests of internal users, is aimed at identifying the weakest positions in the financial activities of the enterprise in order to strengthen them and determine the capabilities, working conditions of the enterprise, creating an information base for making management decisions that ensure the effective operation of the organization.

Analysis of the financial condition in the interests of external users is carried out to assess the degree of guarantees of their economic interests - the ability of the enterprise to timely extinguish its obligations, ensure the efficient use of funds for investors, etc. This analysis allows you to assess the profitability and reliability of cooperation with a specific organization.

1.2 Objectives and methods of financial analysis

Financial analysis has its sources, its purpose and its own methodology.

The main purpose of the analysis is to assess the existence of the financial condition of the organization and to develop measures for financial recovery; timely identification and elimination of shortcomings in financial activities and forecast of reserves for improving the financial condition of the organization of its solvency.

The principles of financial analysis are the continuity of monitoring the state and development of financial processes, continuity, objectivity, scientific character, dynamism, complexity, consistency, practical significance, materiality, reliability, consistency and interconnection of these forms of financial statements, clarity in the interpretation of financial analysis results, validity and promptness. in making management decisions.

There are various methods of financial analysis. In our country, according to the experience of economically developed countries, a methodology based on the calculation and use of a system of coefficients is becoming more widespread.

It is necessary to distinguish between the types of models of financial analysis. The most important of them are descriptive, predicative and normative. Descriptive models are most often descriptive. They are based on the use of financial statements and explanatory notes to it. For such a model of financial analysis, structural, structural-dynamic and coefficient analysis is widely used. Predictive models are usually predictive in nature. They are used to construct forecast estimates of the current and future nature of profits and income, solvency, financial stability. Regulatory models allow you to compare the actual performance of the enterprise with the industry average or internal regulations of the enterprise. This model assumes the establishment of standards for each indicator and analysis of deviations of actual data from the standards.

The analysis of the financial condition of the enterprise is based mainly on relative indicators, since the absolute balance sheet indicators in conditions of inflation are difficult to bring to a comparable form. The relative indicators of the financial condition of the analyzed enterprise can be compared:

with generally accepted "norms" for assessing the degree of risk and predicting the possibility of bankruptcy;

with similar data from other enterprises, which allows you to identify the strengths and weaknesses of the enterprise and its capabilities;

with similar data for previous years to study the trend of improvement or deterioration in the financial condition of the enterprise.

The results and quality of the analysis of the financial condition of the organization is largely determined by the availability and quality of the information base.

The information base of financial analysis is accounting and reporting data, the study of which allows you to assess the financial position of an organization, changes in its assets and liabilities, make sure there are profits and losses, and identify development prospects.

For a general assessment of the dynamics of the financial condition of the enterprise, an analytical net balance is prepared, which makes it possible to assess the structure of the enterprise's property and simultaneously perform horizontal and vertical analysis.

As part of the company's annual accounting report, there are the following forms that provide information for analyzing the financial condition:

form №1 "Balance sheet". It fixes the value (monetary value) of the balances of non-current and circulating assets of capital, funds, profits, loans and borrowings, accounts payable and other liabilities. The balance sheet contains generalized information about the state of the enterprise's economic assets included in the asset, and the sources of their formation, which make up liabilities. This information is presented "at the beginning of the year" and "at the end of the year", which makes it possible to analyze, compare indicators, identify their growth or decline. However, reflecting only balances in the balance sheet does not make it possible to answer all the questions of the owners and other interested services. Additional detailed information is needed not only about the balances, but also about the movement of economic assets and their sources.

This is achieved by preparing the following reporting forms:

form No. 2 "Profit and Loss Statement";

form No. 3 “Report on changes in equity”;

form No. 4 “Statement of Cash Flows”;

form No. 5 "Appendix to the balance sheet".

the form of statistical reporting, data of primary and analytical accounting, which decipher and detail individual balance sheet items.

Funds in the asset balance are grouped into two sections. Section 1 reflects long-term (non-current) assets: fixed assets and intangible assets at residual value, long-term financial investments, capital construction in progress. Section 2 provides information on current assets, which include stocks of raw materials and materials, work in progress, finished goods, all types of receivables, cash and other assets.

The balance sheet liability (enterprise liabilities) is represented by three sections: capital and reserves (section 3), long-term liabilities (section 4), short-term liabilities (section 5).

The classical scheme for analyzing the financial condition of an enterprise provides for a general analysis of the financial condition of the enterprise, determining the financial stability and liquidity of the balance sheet, analyzing financial ratios, determining the business activity and profitability and generalizing the characteristics of the financial condition, indicating the identified critical points in the financial activity of the enterprise.

As a result, an analysis of the financial situation of the enterprise should give the management of the enterprise a picture of its actual state, and to persons who do not directly work in this enterprise, but are interested in its financial condition, the information necessary for an impartial judgment, for example, about the rationality of using additional investments made in the enterprise etc.

Before analyzing the financial condition of the enterprise, an analytical (suitable for analysis) balance sheet should be formed.

The list of procedures for converting the reporting form of the balance sheet into an analytical balance depends on specific conditions. This list cannot be predetermined for all cases. It is important that the indicators that most significantly distort the real picture are corrected.

1.3 Analysis of the property status of the organization

Analysis of the financial condition of an organization begins with a study of its property, assessment of the composition, structure, placement and use of funds (assets) and sources of their formation (liabilities) according to the balance sheet. For this, a comparative analytical balance is drawn up, in which the assets are grouped according to the degree of liquidity growth, and the sources - according to the urgency of the obligations.

The comparative analytical balance includes indicators characterizing the property status of the enterprise, makes it possible to assess its general change and draw a conclusion about through which sources there was an inflow of new funds and in which assets these funds were invested.

Analysis of the dynamics of the composition and structure of property allows you to establish the size of the absolute and relative increase or decrease in the total property of the enterprise and its individual types.

According to the comparative analytical balance, the change in the amount of funds at the disposal of the enterprise is estimated, i.e. balance sheet currency, by comparing indicators at the end and beginning of the analyzed period.

It is advisable to compare the rate of change in the balance sheet currency with the rate of change in revenue and profit (according to the profit and loss statement). It is believed that the outstripping growth rates of revenue in comparison with the growth rates of balance sheet assets reflect the rational use of the organization's funds.

Then the structure of the distribution of funds is studied, i.e. the share of participation of each type of property in changing the total value of assets is calculated.

An increase in the amount and share of working capital, from a financial point of view, indicates an increase in the mobility of property or an expansion of the organization's economic activities. But it is important to establish, due to what types of working capital there was a change in the structure of current assets.

The growth of the amount and share of fixed assets (non-current assets) indicates the strengthening of the material and technical base of the organization, but shows that a significant part of the attracted financial resources is invested in less liquid assets, which reduces the financial stability of the enterprise, since it leads to a slowdown in the turnover of the total assets of the enterprise , decrease in the efficiency of use of funds.

The change in the balance sheet currency or the value of assets (property) is provided by sources that can be own and borrowed. The relationship between these sources mainly determines the financial position of the enterprise.

The growth of the size and share of own funds indicates the expansion of the enterprise, leads to the strengthening of the financial independence of the enterprise and increases its reliability as a commercial partner.

An increase in the share of borrowed funds may indicate an increase in the financial instability of the organization and an increase in the degree of financial risks. In the course of the analysis, it is necessary to study the structure of borrowed funds in comparison with the assets of the enterprise asset (cash, short-term financial additions, accounts receivable).

The study of asset and liability data allows you to assess the change in the composition and mobility of funds, the sources of formation of the organization's property and the effectiveness of their use.

1.4 Analysis of the financial stability of the enterprise

After a general assessment of the property status of the organization and its changes during the analyzed period, its financial stability is studied.

In a market economy, the guarantee of survival and the basis for the stable position of an enterprise is its financial stability. It reflects a state of financial resources in which an enterprise, freely maneuvering funds, is able, through their effective use, to ensure an uninterrupted process of production and sale of products, as well as the costs of its expansion and renewal.

Financial stability is characterized by the state and structure of the organization's assets, their provision with sources. They are the main criteria for the reliability of an organization as a commercial partner. The study of financial stability allows you to assess the ability of an organization to ensure a smooth process of financial and economic activities and the degree of coverage of funds invested in assets by its own sources.

To assess the financial stability of an enterprise, an analysis of its financial condition is required. Financial condition is a set of indicators reflecting the availability, placement and use of financial resources. It is the ability of an enterprise to finance its activities.

The coefficients that allow us to study the financial stability of the organization include:

Ownership ratio - is calculated as the ratio of own sources to the balance sheet total and shows what part of the organization's property is formulated at its own expense.

The ratio of borrowed funds is determined by the ratio of borrowed funds to the value of the total funds of the enterprise. It characterizes the structure of enterprise funds in terms of the share of borrowed funds.

The ratio of debt and equity is determined by the ratio of debt to equity. Shows the amount of borrowed funds per unit of equity.

Long-term borrowing ratio is calculated as the ratio of the value of long-term liabilities to the amount of own funds and long-term loans. It shows the share of long-term loans that ensure the development of the enterprise in sources equivalent to its own.

The coefficient of mobility of own funds is the ratio of own working capital and the total value of the company's own funds.

The coefficient of the real value of property - is calculated as the ratio of the total value of fixed assets, production stocks and backlog of work in progress to the value of property, characterizes the production potential of the organization.

The ratio of the real value of fixed assets in the property of the enterprise is calculated by the ratio of fixed assets at residual value to the value of the property.

The ratio of the availability of own circulating assets of current assets - calculated by dividing own funds in circulation by the cost of circulating assets shows what part of the circulating assets is formed from own sources.

Financial stability analysis is carried out to identify the solvency of the enterprise - the ability of the enterprise is calculated by payments to ensure the process of continuous production, i.e. the ability of the enterprise to pay for its fixed and circulating production assets. The ability of an enterprise to make payments in a timely manner, to finance its activities on an expanded basis indicates its good financial condition.

Financial stability is determined by the indicator of the provision of stocks of the enterprise with its own and borrowed sources of formation of fixed and circulating production assets.

After studying financial stability, we turn to the analysis of balance sheet liquidity.

1.5 Analysis of the organization's solvency

Speaking about the liquidity of an enterprise, they mean that it has working capital in an amount theoretically sufficient to pay off short-term obligations, even if it does not meet the maturity dates stipulated by the contracts.

Solvency means that the company has sufficient funds to settle accounts payable requiring immediate repayment.

Analysis of balance sheet liquidity is carried out to assess the creditworthiness of the enterprise (the ability to pay for all obligations).

The solvency of the organization is characterized by liquidity ratios, which are calculated as the ratio of various types of working capital to the amount of urgent obligations.

An enterprise can be liquid to a greater or lesser extent, since its current assets include heterogeneous circulating assets, among which there are both easily realizable and hard-to-sell to pay off external debt.

The study of the solvency of the organization allows you to measure the availability and receipt of funds with essential payments.

Each type of working capital has its own liquidity. And the liquidity ratio shows what part of the short-term liabilities the organization can repay in the event that specific types of working capital are converted into money.

There are the following liquidity ratios that characterize the solvency:

Absolute liquidity ratio - is calculated as the ratio of cash to the amount of short-term liabilities.

This is the most stringent criterion of solvency, showing what part of short-term obligations can be repaid immediately. The lower limit of this ratio should be 0.2, i.e. at least 20% of urgent liabilities must be covered by cash and short-term financial investments.

The critical liquidity ratio (intermediate coverage, financial coverage, solvency, etc.) is defined as the ratio of the aggregate amount of funds, accounts receivable and short-term financial investments to the amount of short-term liabilities.

This ratio shows what part of the organization's urgent liabilities can be settled at the expense of the most liquid and quickly realizable assets (cash, short-term financial investments and accounts receivable, payments for which are expected within 12 months after the reporting date). The value of this coefficient should not be lower than 0.7, i.e. at least 70% of urgent liabilities must be covered by cash, short-term financial investments and short-term receivables.

Current liquidity ratio (total coverage) - is calculated as the ratio of the company's current assets to the amount of short-term liabilities.

The current (total) liquidity ratio reflects whether the company has enough funds that can be used to pay off its short-term liabilities during the coming year. The value of this coefficient should not be lower than 2, i.e. the organization's urgent liabilities may be at least 2 times lower than the value of its current assets.

2. Express analysis of financial condition

Financial analysis is a process of studying the influence of factors of the external and internal environment on the performance of the financial activities of the enterprise in order to identify the features and possible directions of development in the future period.

Express analysis of the financial condition, carried out on the basis of calculating the coefficients of financial stability, liquidity, turnover, profitability, characterizes various aspects of financial activities and gives an overall assessment of the financial condition of the enterprise.

Express analysis of the financial condition is the initial, mandatory stage of financial resources management, since in order to develop a sound financial strategy focused on the future, reliable, fairly complete information about the financial condition of the enterprise in the reporting period is needed.

To carry out an express analysis of the financial condition of the balance sheet, a consolidated balance sheet is built.

2.1 Assessment of financial stability

Financial stability ratios characterize the long-term prospects for the development of an enterprise, reflect the degree of protection of the interests of creditors and investors with long-term investments in the company. To assess the financial stability of the organization, the following indicators are determined.

1) Coefficient of autonomy (financial independence) (Ka) shows the share of own funds in the total resources of the enterprise, calculated by the formula:

) Ka for 2013 \u003d SS / WB

) Ka for 2012 \u003d SS / WB

/144121=0,22 (1)

where CC is the amount of own funds, thousand rubles;

WB - balance sheet currency, thousand rubles.

Standard value: Ka ≥ 0.5.

The autonomy ratio of the organization as of December 31, 2013 was 0.17. The resulting value indicates an insufficient share of equity capital in the total capital of the organization. The change in the equity ratio during the analyzed period (from 31.12.2012 to 31.12.2013) was -.0.05

2) Financial risk ratio (Kfr) shows the ratio of borrowed funds to equity, calculated by the formula:

) Kfrza 2013 \u003d ZS / SS

45792/149942=0,82

) Kfrza 2012 \u003d ZS / SS

35289/144121=0,77 (2)

where ЗС - the amount of borrowed funds, thousand rubles.

Standard value: Kfr ≤ 1.

The financial risk ratio as of December 31, 2013 was 0.82. The resulting value indicates the optimal share of borrowed capital in the total capital of the organization. The change in the financial risk ratio during the analyzed period (from 31.12.2012 to 31.12.2013) amounted to +0.5

3) Coefficient of provision with own circulating assets (Ko) shows the availability of its own working capital, necessary for financial stability, is determined by the formula:

,

) Co. for 2013 \u003d SS + DO-VA / OA

78342-104578/149942=0,002

2) Co. for 2012 \u003d SS + DO-VA / OA

76125-95461/144121=0,09 (3)

where SOS - own working capital, thousand rubles;

ОА - value of current assets, thousand rubles;

DO - the amount of long-term liabilities (obligations), thousand rubles;

VA - the value of non-current assets, thousand rubles.

Standard value: Ko ≥ 0.1.

The ratio of provision with own circulating assets as of 31.12.2013 was 0.002. The resulting value indicates that the enterprise does not have equity capital. The change in the financial risk ratio during the analyzed period (from 31.12.2012 to 31.12.2013) amounted to -0.088

4) Coefficient of maneuverability (Km) shows what part of the company's own funds is invested in the most mobile assets. The higher the share of these funds, the more the enterprise has the opportunity to maneuver with its own funds. The maneuverability coefficient is calculated using the formula:

) Kmza 2013 \u003d SOS / SS

78342-104578/25808= -0,016

) Kmza 2012 \u003d SOS / SS

76125-95461/32707= 0,56 (4)

Standard value: Km ≥ 0.5.

The maneuverability coefficient as of December 31, 2013 was -0.016. At the beginning of the analyzed period, the coefficient was normal, but at the end it assumed a negative value, which means that it was impossible to use maneuvering by one's own means. The change in the coefficient of maneuverability during the analyzed period (from 31.12.2012 to 31.12.2013) was 0.58

5) Funding ratio (Kf) shows how many times own funds exceed borrowed funds, calculated by the formula:

) Кф for 2013 \u003d SS / ЗС

/78342+42792=0,21

) Кф for 2012 \u003d SS / ЗС

/76125+35289=0,29 (5)

Standard value: Kf ≥ 1.

Funding ratio (Kf) as of December 31, 2013 was 0.21, which means that. the company's assets are financed by at least 20% only. At the beginning of the analyzed period, this coefficient was higher and amounted to 0.29. The change in the coefficient during the analyzed period (from 31.12.2012 to 31.12.2013) was 0.8

.2 Assessment of liquidity

The liquidity of the balance sheet is expressed in the degree of coverage of the company's liabilities by its assets, the term of conversion of which into money corresponds to the maturity of the obligations. To analyze the liquidity of the balance sheet, asset items are grouped by the degree of decreasing liquidity, liabilities items - by the degree of increase in maturity, the degree of their compliance is checked.

The liquidity of the company is determined using the following coefficients, which allow to determine the ability of the company to pay its short-term obligations during the reporting period.

1) Absolute liquidity ratio (KAL) shows what part of the current debt can be repaid in the nearest time to the time of drawing up the balance, calculated by the formula:

) Cal for 2013 \u003d DS / KO

/19537+22670=0,07

) Cal for 2012 \u003d DS / KO

/3960+28927=0,2 (6)

where DS is the amount of funds, thousand rubles;

KO - the amount of short-term liabilities, thousand rubles.

Standard value: 0.2 ≤ CAL ≤ 0.5.

2) Quick ratio (KBL) shows the extent to which all current financial liabilities can be satisfied by highly liquid assets:

,

) KBL for 2013 \u003d DS + KFV + DZ / KO

69+15912/19537+22670=0,45

) KBL for 2012 \u003d DS + KFV + DZ / KO

1379+19237/3960+28927=0,83 (7)

where KFV is the amount of short-term financial investments, thousand rubles;

ДЗ - the amount of accounts receivable, thousand rubles.

Standard value: 0.4 ≤ KBL ≤ 0.8.

3) Current liquidity ratio (coverage ratio) (KTL) shows the extent to which current (current) assets cover short-term liabilities:

,

) KTL for 2013 \u003d OA-RBP / KO

/19537+22670=1,07

) KTL for 2012 \u003d OA-RBP / KO

/3960+28927=1,48 (8)

where ОА is the amount of current assets, thousand rubles;

RBP - the amount of deferred expenses, thousand rubles.

Standard value: 1 ≤ KTL ≤ 2.

As of December 31, 2013, the current liquidity ratio is in line with the norm. It should be noted that over the entire period under review, the coefficient decreased

The quick ratio as of December 31, 2013 was also within the normal range. This means that Avtovaz has enough assets that can be quickly converted into cash to pay off short-term payables.

The third of the coefficients, characterizing the organization's ability to pay off all or part of short-term debt at the expense of cash and short-term financial investments, has a value below the acceptable limit.

2.3 Estimation of turnover

Turnover indicators (business activity) allow you to analyze how efficiently the company uses its funds. In addition, turnover indicators occupy an important place in financial management, since the rate of turnover of funds, that is, the speed of their transformation into monetary form, has a direct impact on the company's solvency. In addition, an increase in the turnover rate, other things being equal, contributes to an increase in the production potential of the enterprise. When assessing the turnover of funds, the following indicators are calculated.

1) Asset turnover ratio (transformation) (KOa) characterizes the efficiency of the enterprise's use of all available resources, that is, it shows how many times a year a full cycle of production and circulation is performed, bringing the corresponding effect in the form of profit. This coefficient is calculated using the formula:

) KOaza2013 \u003d V / A

) KOaza2012 \u003d B / A

/144121=1,27 (11)

where B is the proceeds from the sale of products, thousand rubles;

Average annual value of assets, thousand rubles

2) Period of circulation of inventory (POZ) - the average time required for the transformation of raw materials into finished products and their sale:

) POS for 2013 \u003d 360 * З / Срп

*24846/163012=54,87

) POS for 2012 \u003d 360 * З / Срп

*19997/165517=43,49 (12)

where is the average annual value of inventories, thousand rubles;

Срп - cost of goods sold, thousand rubles.

3) The period of circulation of accounts receivable (POdz) - the average number of days required to convert accounts receivable into cash:

,

) PODZ for 2013 \u003d 360 * DZ / V

*15912/175152=32,7

) PODZ for 2012 \u003d 360 * DZ / V

*19237/183217=37,8 (13)

where is the average annual amount of accounts receivable (only for buyers and customers).

) The turnover period of equity capital (POSK) is calculated by the formula:

,

) POSK for 2013 \u003d 360 * SK / V

* 25808/175152 \u003d 53.04 for 2013

) POSC for 2012 \u003d 360 * SK / V

360 * 32707/183217 \u003d 64.26 for 2012 (14)

2.4 Cost benefit assessment

Profitability is a relative indicator characterizing the level of profitability of an enterprise, the value of which shows the ratio of the result to the costs. Profitability is an integral indicator, which, by taking into account the influence of a large number of factors, gives a fairly complete description of the enterprise's activities.

Ratios of profitability (profitability) characterize the ability of an enterprise to generate the necessary profit in the course of its economic activities and determine the overall efficiency of the enterprise's property and invested capital.

The following profitability ratios are calculated.

1) Return on assets (Ra)an enterprise characterizes the level of net profit used by the enterprise:

,

) Ra for 2013 \u003d PE / A * 100

) Ra for 2012 \u003d PE / A * 100

/144121*100=0,15 (15)

where PE is the amount of net profit (after tax);

Average annual assets.

2) Return on sales (Rpr) characterizes the profitability of the production activity of the enterprise:

.

) Rpr for 2013 \u003d PE / V * 100

/175152*100=3,94

) Rpr for 2012 \u003d PE / V * 100

/183217*100=0,11 (16)

3) Product profitability (Pp) characterizes the level of profit received per unit of production cost:

,

) Rp for 2013 \u003d PE / Srr * 100

/163012*100=2,23

) Rp for 2013 \u003d PE / Srr * 100

/165517*100=0,13 (17)

where Срп is the cost of goods sold.

4) Return on equity (RAC) characterizes the level of profitability of equity:

.

) RSK for 2013 \u003d PE / SK * 100

/25808*100=26,73

) RSK for 2013 \u003d PE / SK * 100

/32707*100=0,65 (18)

Table 1

Calculation of the influence of factors on the return on equity

All three profitability indicators for the last year shown in the table have negative values, since the organization has received both a loss from sales and, in general, a loss from financial and economic activities.

In 2013, the organization for ordinary activities received a loss on each ruble of sales proceeds.

Profitability, calculated as the ratio of profit before tax and interest expense (EBIT) to the company's revenue for the last year. That is, each ruble of Avtovaz's proceeds contained -0.64 kopecks. loss before tax and interest payable. For 2013, each ruble of the organization's equity capital brought a loss. Over the entire analyzed period, the decrease in the return on equity was 60%. For 2013, the value of the return on equity is characterized as clearly not corresponding to the norm.

The return on assets in 2013 was 25%. Over the entire period under review, the decrease in the return on assets was 50%.

A clear change in the main indicators of return on assets and capital of Avtovaz OJSC during the analyzed period is presented in the following graph.

3. Operational analysis

In the context of financial resource management, operational analysis makes it possible to determine the amount of cash capital mobilized by the production and economic activities of the enterprise, it allows to identify the dependence of the financial results of the enterprise on the volume of production and sales

table 2

Calculation of the threshold of profitability, margin of financial strength and the strength of the impact of operating leverage

Index	Designation, calculation formula			Change (+, -)
Revenues from sales
Cost price, including:
Variable costs1
Fixed costs
Gross margin	VM \u003d B - Iper \u003d P + Hypost
Gross margin ratio	KVM \u003d VM / V
Profitability threshold	PR \u003d Hypost / KVM
Financial strength margin, rub.	ZFP \u003d B - PR
Financial strength margin,%	FFP% \u003d \u003d FFP / V ∙ 100
	P \u003d FFP ∙ KVM
Operating Lever Force	SVOR \u003d VM / P

Since, as of December 31, 2013, there is a shortage of own circulating assets, calculated for all three options, the financial position of the organization on this basis can be characterized as unsatisfactory. Moreover, all three indicators of coverage of stocks by own circulating assets during the analyzed period worsened their values.

4. Statement of cash flows

In the classical sense, the object of financial management is the company's finances, that is, cash. Accordingly, the objects of financial management also include the sources of their formation and relations that develop in the process of their formation and use. A cash flow statement (FC) is a financial reporting document that reflects receipts, expenditures and net changes in cash in the course of the company's current activities (economic, investment, financial) for a certain period. The report on the movement of the DS is important for assessing the financial capabilities of an enterprise, since it provides information that reflects all operations related to the formation of financial resources and their use. Before drawing up a report on the movement of the DS, a table is formed that characterizes the size of sources and use of funds by balance sheet items in the form below (Table 3).

Table 3

Calculation of cash flows on the consolidated balance sheet of the enterprise

Balance sheet items	2012, den. units *	2013, den. units	Changes
			Source	Using
Intangible assets
Fixed assets
Long-term financial investments
Construction in progress
Other noncurrent assets
Receivables
Cash
Short-term financial investments
Other current assets
Total assets
Own funds
Long-term liabilities
Short-term liabilities, including:
Debts to suppliers
Debt to the budget
Salary arrears
Other liabilities
Total liabilities
Total changes

Drawing up a report on the movement of the DS is necessary to obtain information about the nature of the resulting cash flow and its structure in order to be able to reliably form the optimal capital structure of the enterprise.

Table 4

Cash flow statement

Index	DS inflow, den. units	DS outflow, den. units		Change, in% of total
DS movement from current activities
1. Net profit
2. Depreciation
3. Change in inventories
4. Change in VAT
5. Change in accounts payable incl. payables to suppliers budget arrears payroll arrears
6. Change in receivables
DS from current activities
Movement of DS from investment activities
1. Acquisition of OS
2. Acquisition of intangible assets
3. Long-term financial investments
DS from investment activities
Movement of DS from financial activities
1. Change in short-term and long-term debt to the bank
2. Targeted financing
3. Increase in equity funds
DS from financial activities
Net inflow (outflow) DC *
DS at the beginning of the period
DS at the end of the period

Below, on a qualitative basis, the most important indicators of the financial position and performance results of Avtovaz OJSC for two years are summarized.

An extremely good indicator is the following - net assets exceed the authorized capital, moreover, they have increased over the analyzed period.

The following 3 indicators of the financial position of Avtovaz OJSC have unsatisfactory values:

Low value of equity capital relative to total assets

· The ratio of absolute liquidity is below the accepted norm;

· The investment coverage ratio is below the norm.

On the critical side, the financial position and performance of Avtovaz OJSC are characterized by the following indicators:

· The ratio of provision with own circulating assets is of critical importance;

· The current (total) liquidity ratio is significantly lower than the normal value;

· The quick (intermediate) liquidity ratio is significantly lower than the standard value;

· The assets of the organization do not cover the liabilities corresponding to them in terms of maturity;

· Extremely unstable financial position in terms of own circulating assets;

· In 2013, a loss from sales was received (-3,497 thousand rubles), moreover, there was a negative trend compared to the previous year (-3,497 thousand rubles);

· Loss from financial and economic activities in 2013 amounted to -4,413 thousand rubles.

Financial results for the period 01.01.12-31.12.13	Financial position as of 31.12.2013
Excellent (AAA)
Very good (AA)
Good (A)
Positive (BBB)
Normal (BB)
Satisfactory (B)
Unsatisfactory (CCC)
Bad (CC)
Very bad (C)
Critical (D)

Based on the results of the above analysis, the following results were obtained: financial position of Avtovaz OJSC - operating results during the analyzed period (from 2012 to 2013) - According to the rating scale, these are CC (bad position) and CCC (unsatisfactory results), respectively. The assessment was made taking into account both the values \u200b\u200bof key indicators at the end of the analyzed period and the dynamics of indicators, including their projected values \u200b\u200bfor the next year. Based on these two ratings, the final rating score of the financial condition of the organization was calculated. The financial condition was assessed by CCC - unsatisfactory.

The "CCC" rating indicates an unsatisfactory financial condition of the organization, in which financial indicators, as a rule, do not fit into the norm. The reasons for this state can be both objective (mobilization of resources for the implementation of large-scale projects, major transactions, a general recession or crisis in the economy of a country or industry, etc.), or caused by ineffective management. Such organizations can apply to obtain credit resources only with reliable guarantees of the return of funds, which do not depend on the results of the organization's activities in the future (unsatisfactory creditworthiness).

financial solvency stability monetary

List of references

1. Balabanov I.T. Fundamentals of Financial Management. How to manage capital? - M .: Finance and Statistics, 2013. - 384 p.

Dybal S.V. Financial analysis theory and practice: Textbook. allowance. - SPb .: Publishing house "Business-press", 2013. - 304 p.

V.V. Kovalev, O. N. Volkov "Analysis of the economic activity of the enterprise"; Moscow, - Prospect, 2012. - p. 240-256;

V.V. Kovalev. Introduction to Financial Management. - M .: Finance and statistics, 2012 .-- 768 p.

Lyubushin N., Leshcheva V., Dyakova V. Analysis of the financial and economic activities of the enterprise: Textbook. manual for universities / Ed. prof. N. Lyubushin. - M .: UNITI-DANA, 2013 .-- 471 p.

Marengo A. Financial management. Express course for managers. Under the general editorship of Academician of the International Pedagogical Academy, Professor M. Trofimova. - SPb .: Aleteya, 2012 .-- 163 p.

Pavlova L. Financial management. Management of money turnover of the enterprise: Textbook for universities. - M .: Banks and exchanges, UNITI, 2013 .-- 400 p.

Ryabykh O., Pavlenko V., Ivasenko A. "Financial Management", Novosibirsk, 2012. - pp. 15-27;

G.V. Savitskaya, "Analysis of economic activity at the enterprise"; Minsk, - LLC "New knowledge", 2012, p. 636 - 645;

Financial management: theory and practice: Textbook / Ed. E.S. Stoyanova. - 5th ed., Revised and enlarged. - M .: "Perspective", 2013. - 656 p.

Financial express analysis is a small economic study that allows you to get a general idea of \u200b\u200bthe activities of a commercial organization in a short time,

identify problem areas in her work, form questions for a more detailed study.

Since this analysis is mainly based on open information, it can be both internal and external. The first is carried out by the employees of the company itself, and the second - by any external analysts.

Customers of express analysis can be

• managers, founders, investors,
• suppliers of material and financial resources,
• control services,
• all those for whom the assessment of the financial condition of the enterprise is important for making any decisions.

Assessment of the financial condition of the organization - its methods

The financial statements are systematic and complex, reflecting different aspects of the same transactions.

Therefore, the necessary documents for the express analysis are:

1. Balance sheet of the enterprise (form No. 1),
2. Profit and loss statement (form No. 2),
3. Explanatory note.

Express analysis is carried out by comparing and comparing accounting data

The methodology for analyzing the financial condition of an enterprise compares the value of indicators for the starting and ending dates of the period under study.

Among the practical methods for assessing such an analysis are mainly used:

1. Horizontal or temporal analysis, which allows you to assess the dynamics of changes in funds and their sources over a certain period of time. Its purpose is to compare current balance sheet indicators with data from previous periods and study their sharp changes. The figures indicated in each article at the end of the study period are correlated in percentage with the corresponding figures at the beginning of the period, the values \u200b\u200bof which are taken as 100%.
2. Vertical or structural analysis, which consists in determining the share of individual balance sheet items in the resulting total indicator and then comparing these values \u200b\u200bwith similar data from the previous period. Its purpose is to identify the existing changes in the structure of assets and liabilities and determine the need for a thorough analysis of the reasons that caused this.
3. Financial ratios method. In this case, the ratios (coefficients) between the individual values \u200b\u200bof the balance sheet items are calculated and the interdependence of various indicators, as well as their dynamics, are studied.

Read also How to find out the registration number in the FSS by TIN

1. Carrying out a technical verification of reporting in form and substance:

• correct record keeping,
• availability of all necessary details, signatures of responsible persons,
• completeness of applications and forms,
• checking the results of intermediate calculations and control ratios,
• balance sheet currency, etc.

If the balance contains errors, then by definition it cannot serve as the source of the correct analytical decision.

2. Acquaintance with the materials of the explanatory note for assessing the operating conditions of the enterprise and accounting for changes in its financial and property conditions (profitability, asset turnover, solvency, etc.).

This is due to the fact that the balance sheet, reflecting instant data as of a certain date, does not explain what caused the current state of affairs.

The explanatory note contains information on possible distorting factors such as inflation.

3. At this stage, direct economic analysis of financial statements is made. The necessary calculations are made, the data are studied and compared, which are used for the purposes of space-time comparisons.

The result is an assessment of the financial position and economic activity of the company for the reporting period

The degree of detail of the research being conducted is determined by the tasks of the interested users.

Indicators and the purpose of the analysis of the financial condition of the enterprise

The essence of the analysis is tracking the dynamics of a small number of the most significant indicators of the financial condition of the enterprise, as well as comparing their actual values \u200b\u200bwith the standards.

Introduction ... 3

1. Express analysis of financial statements

1.1. The sequence of the express analysis of financial statements ... 5

1.2. Methodology for express analysis of financial reporting indicators ... 14

2. Integrated enterprise activities

2.1. Analysis of the efficiency of using fixed capital ... 17

2.2. Analysis of the use of labor resources ... 25

2.3. Analysis of production and sales of products ... 35

2.4. Analysis of production costs ... 43

2.5. Analysis of financial performance ... 55

2.6. Comprehensive analysis of the company's activities ... 65

Conclusion ... 67

Bibliography ... 68

Excerpt from the text

Introduction

Most enterprises in modern conditions are faced with the need for an objective assessment of the financial condition, solvency and reliability of their partners, constant monitoring of the quality of settlement and financial transactions and payment discipline. Almost all users of financial statements of enterprises use the results of the analysis of financial and economic activities to make decisions to optimize their interests.

An organization's governance policy cannot be successfully implemented on the basis of goodwill and administration. We need financial instruments and mechanisms to influence the production system, influence through financial levers, regulation through financial flows that are used in financial policy. Therefore, the success of the production system management policy is determined by the financial policy.

The purpose of this work is the economic activity of the enterprise. To achieve this goal, this work will consider the most important points and directions in the analysis, both theoretically and practically.

Based on the goals set, tasks can be formed:

• - analysis of the efficiency of using fixed capital
• analysis of the use of labor resources
• analysis of production and sales of products
• analysis of production costs
• analysis of financial performance
• complex analysis of the enterprise

To make management decisions in the areas of production, sales, finance, investment and innovation, management needs ongoing business awareness of the relevant issues, which is the result of selection, analysis, evaluation and concentration of source information. An analytical reading of the initial data is necessary based on the goals of analysis and management.

1. Express analysis of the company's financial statements

1.1. The sequence of the express analysis of financial statements

Express analysis is a method for diagnosing the economic state of economic objects on the basis of financial statements and calculation of indicators by algorithms of their interconnections using computer information technologies.

The purpose of the express analysis is an operational generalized assessment of the results of economic activity and the financial condition of the object according to the main analytical indicators and methods of their calculation.

The sequence of the express analysis is as follows:

viewing the report on formal grounds;

familiarization with the auditor's opinion;

identification of "sick" articles in the reporting and their assessment in dynamics;

familiarization with key indicators;

reading the explanatory note (analytical sections of the report);

general assessment of property and financial condition according to balance sheet data;

formulation of conclusions based on the analysis results.

Viewing a report by formal characteristics. The semantic load of this, at first glance, completely formal, non-analytical procedure, during which the volume and quality of the report, the convenience of its structuring, the presence of a minimum set of required reporting forms, the availability and completeness of analytical explanations, the availability and interpretability of the presented analytical indicators, etc. are assessed. , is as follows.

The culture of making a report is an important factor in the successful conduct of business both from the standpoint of the company that prepared the report and from the standpoint of its external counterparties.

Firstly, a well-structured report allows the management of the enterprise and its owners to take a fresh look at the state of affairs at the enterprise, the results of financial and economic activity, and to determine the prospects for its development.

Secondly, for the counterparties of the enterprise it is increasingly becoming the main information document confirming the possibility and economic feasibility of interaction with this enterprise.

Thirdly, the report is a kind of advertising campaign. Often, the first step of a counterparty firm in establishing production contacts is to request the possibility of familiarization with the annual financial statements of a potential partner, therefore, the result of the upcoming cooperation negotiations can largely depend on how competently and attractive the report is.

Rule: before signing a contract, read the latest annual report of a potential counterparty - it is an immutable truth for any sophisticated businessman.

In other words, it is a kind of business card of the enterprise - according to it, the first, sometimes decisive, idea of \u200b\u200bthe enterprise is formed. The reasons for the unsatisfactory or carelessly drawn up (on formal and substantive grounds) report, of course, can be formulated, but in any case they are not very excuse.

The logic of reasoning of a third-party analyst (supplier, lender, etc.) is quite obvious: if a potential counterparty whose report is being viewed at the moment cannot even present his “business card” in its normal form (there is no time, does not consider it the main thing, sorry for the money for registration , usual negligence, etc.), then one can hardly be sure of the business viability of such a partner. There are no trifles in business, especially when it comes to the annual report as a formal confirmation of the financial viability of the enterprise.

Familiarization with the auditor's report. There are several

List of used literature

1.Bakanov M.I., Sheremet A.D. The theory of economic analysis: Textbook. - M .: Finance and Statistics, 1998

2. Berdnikova T.B. Analysis and diagnostics of the financial and economic activities of the enterprise: Textbook. allowance. - M.: INFRA-M, 2005

3. Bogatko A. N. Fundamentals of economic analysis of a business entity. - M .: Finance and Statistics, 2000

4. Savitskaya G. V. Analysis of the economic activity of the enterprise. - Minsk: FE "Ecoperspektiva", 2000

5. Sivkova A.I. Praticum on the analysis of financial and economic activities for college and university students. - Rostov n / a: publishing house "Phoenix", 2001

6. Chuev I. N., Chechevitsyna L. N. Analysis of financial and economic activities. Textbook. allowance. - 2004 (ser. "Higher education")

Express analysis of financial statements is a financial analysis for which a simple balance sheet and income statement are sufficient.

Despite the seeming limitedness of the initial data, they can be used to draw conclusions about the structure of the balance of financial stability and solvency of the company, the presence or absence of free funds, the cash flow management policy, and thus - about the creditworthiness and the stage of the investment cycle.

Analysis of the financial condition of the enterprise includes an analysis of the balance sheet and reports on the financial results of the company being assessed (express analysis of financial statements) for the past periods to identify trends in its activities and determine the main financial indicators. The main purpose of the express analysis, which is one of the types of financial analysis, is a visual and simple assessment of the property status and development efficiency of an economic entity.

Express analysis of financial statements is the best solution for quickly diagnosing the state of affairs in the enterprise in order to decide to what level it makes sense to deepen the analysis and what additional data to look for.

Express analysis of financial statements makes it possible to get a general idea of \u200b\u200bthe financial position of the organization in one or two days. Its convenience lies in the simplicity of the analysis information base. Two main forms (balance sheet and profit and loss statement) are, firstly, standard and, secondly, mandatory for submission to the tax office and statistics authorities.

With the correct handling of the figures of consolidated financial statements and a well-thought-out methodology, an express analysis of financial statements can provide a comprehensive snapshot of the state of the enterprise, which is necessary for making serious management decisions.

The main sources of information, express analysis of financial statements are the financial statements of the enterprise. According to the federal law "On accounting" the basic accounting documents of the company are the balance sheet (form No. 1) and the profit and loss statement (form No. 2). The composition of the annual reporting also includes annexes to the balance sheet: report on changes in capital (form No. 3); cash flow statement (form No. 4); annex to the balance sheet (form No. 5); report on the targeted use of the funds received (form No. 6); an explanatory note containing material information about the organization, its financial position; audit report.

Express analysis of the financial condition of the enterprise involves the following stages:

Stage 1. Analysis of the property status.

Stage 2. Analysis of financial results.

Stage 3. Financial analysis.

Stage 1. Analysis of the property status of the company

The most general idea of \u200b\u200bthe qualitative changes that have taken place in the structure of company funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting. Vertical analysis reveals the structure of company funds and their sources, while horizontal analysis consists in constructing analytical tables in which absolute parameters are supplemented by relative growth (decline) rates.

Stage 2. Analysis of financial results

The efficiency and economic feasibility (and profit for us is the main and main) of the operation of the enterprise is measured by absolute and relative indicators: profit, the level of gross income, profitability, etc. Using the data of the profit and loss statement (Form No. 2) of the balance sheet, we will calculate the main indicators of profitability :

2.1. Return on sales shows how much profit is accounted for per unit of product sold.

2.2. The profitability of the main activity shows how much profit from sales falls on 1 ruble of costs.

2.3. The return on sales (ROS) ratio is the ratio of net income to gross sales.

2.4. Return on assets of the enterprise (ROA) shows how many monetary units of net profit each unit of assets at the disposal of the company brings.

2.5. The return on equity (ROE) ratio shows how much income each ruble invested in the company's business by its owners brings.

2.6. The payback period of equity capital shows the number of years during which investments in a given organization will be fully paid off.

Stage 3. Financial analysis

As a rule, the analysis involves carrying out:

3.1. Assessment of the dynamics and structure of balance sheet items.

3.2. Analysis of liquidity and solvency of the balance.

3.3. Analysis of financial stability and capital structure.

3.1. Assessment of the dynamics and structure of balance sheet items. For a general assessment of the dynamics of the financial condition, it is necessary to group balance sheet items into some specific groups based on liquidity and urgency of obligations. (Perform aggregation of balance sheet items). Based on the aggregated balance sheet, the structure of the property of the enterprise is analyzed.

Also, you can build an analytical balance that allows you to perform a dynamic analysis of indicators, to establish their absolute increments and growth rates.

3.2. Analysis of liquidity and solvency of the balance. The financial position of an enterprise is characterized by indicators of liquidity and solvency of the enterprise, that is, the ability to timely and fully make settlements on short-term obligations.

It is clear that liquidity and solvency are not equivalent to each other. Thus, the liquidity ratios can characterize the financial position as satisfactory, although in essence this estimate may turn out to be erroneous if the current assets have a significant proportion of illiquid assets and overdue receivables, which can be seen by analyzing the balance sheet liquidity.

3.3. Financial stability analysis. Assessment of the financial condition of an enterprise will be incomplete without an analysis of financial stability. The task of analyzing financial stability is to assess the size and structure of assets and liabilities. Indicators that characterize independence for each element of assets and property as a whole make it possible to measure whether the analyzed organization is financially sound enough. The simplest and most approximate way to assess financial stability is to calculate the absolute indicators of financial stability.

Most often, for the analysis of financial stability, relative coefficients are used, which are accepted in the world and domestic accounting and analytical practice.

How to conduct an express analysis of financial condition

And so, first of all, when conducting an express analysis of the financial condition, it is necessary to identify problematic items of the company's balance sheet, view reporting items, compare the data of the current period with the past and identify problem items. It is necessary to identify and assess the dynamics of problem items in the balance sheet of two types:

1. Talking about the extreme unsatisfactory performance of the company in the reporting period and the resulting poor financial situation (uncovered losses, overdue loans and borrowings and payables, etc.).

2. Evidence of certain shortcomings in the work of the organization, which, if they are regularly repeated in the reporting of several adjacent periods, may significantly affect the financial position of the company (overdue receivables, debts written off to financial results, fines collected from the organization, penalties, penalties, negative net cash flow, etc.).

For example: Accounts receivable. If the increase in the indicator was due to the growth of accounts receivable, this indicates an unsatisfactory policy for working with clients, but provided that revenue grows, it may mean a change in credit policy aimed at stimulating sales.

Balance data allow preliminary assessment of the company's solvency, which can be called the firm's “safety margin” in terms of solvency: Solvency \u003d cost of working capital - short-term liabilities.

Now you need to do vertical and horizontal analysis. When vertically and horizontally analyzing the profit and loss statement, it is necessary to trace the relationship between the dynamics of revenue and cost. Unidirectional growth or declines in performance should not be a concern for the analyst, but if revenue declines as costs rise, this indicates only one thing: the company may have serious business performance problems in the near future.

The next step is to analyze the balance sheet liquidity. At this stage, it is necessary to answer the question: Does the company have sufficient assets to cover the company's liabilities.

Of interest in the express analysis are the coefficients characterizing the business activity of the company. Analysis of indicators should show the effectiveness of the company's managers, both with suppliers and customers. The business activity of an enterprise in the financial aspect is manifested, first of all, in the rate of turnover of its funds.

It may not be superfluous to calculate the financial stability ratio, which characterizes the share of own funds in the balance sheet currency. And in the presence of debt on loans and borrowings, it makes sense to calculate the interest coverage ratio.

Finally, we calculate the indicators of profitability, it is enough to determine the total and net profitability of the company. However, one should not forget that there are no standard values \u200b\u200bfor this indicator, and it is strictly individual for each sector of the economy. In an economic crisis, if the indicator is positive, this is already good, but if it is higher than the Central Bank's refinancing rate, the situation can be described as normal.

The correct choice of key indicators is very important in the analysis process. They should be designed in such a way as to practically meet the needs of various user groups.

So, for the heads of the enterprise, the set includes indicators of gross profit, profit from sales, the level of profitability, operating profit and EBITDA in absolute and relative terms.

Solvency ratios, liquidity and indicators characterizing the business activity of the enterprise - the turnover of receivables and payables.

For shareholders and owners, the return on equity will be very interesting. It is one of the key indicators in assessing the effectiveness of the use of funds invested by owners in a business.

Liquidity ratios (current liquidity and working capital) make it possible to determine the degree of the company's solvency, its ability to timely pay off short-term liabilities.

The amount of working capital characterizes the possibility of business expansion and reinvestment. This is especially important when the company is pursuing an active investment policy.

For partners, counterparties, the key indicators in the analysis of reporting are: indicators of the investment attractiveness of the enterprise; business activity indicators (asset turnover ratios, equity capital: accounts receivable and payable); the amount of net assets.

The investment attractiveness of the company is important for lenders and investors. It is characterized by indicators of liquidity, financial stability, and business activity. These include the turnover of assets, capital, accounts receivable and payable.

Carrying out an express analysis of the accounting (financial) statements, the user mainly solves the problem of identifying the "painful" points of the company's activities in order to determine the areas of in-depth analysis.

In this sense, express analysis can be carried out with the minimum necessary calculations and using various techniques and technologies, which can be different for each user. For express analysis, the following main indicators can be selected that characterize the financial condition of the enterprise:

1. Assessment of property status: The amount of economic assets of the organization; Share of fixed assets in total assets; Fixed assets depreciation rate.

2. Assessment of financial condition: Ratio of current solvency and liquidity; Absolute liquidity ratio; Autonomy coefficient; Coefficient of provision with own working capital.

3. Assessment of business activity: The turnover of all assets used; Accounts receivable turnover; Return on assets.

4. Evaluation of profitability: The profitability of all assets; Profitability of implementation; Return on operating costs.

5. Presence of "painful" items in the reporting: Losses; Overdue receivables and payables; Loans and loans not repaid on time; Bills issued (received) overdue.

Express analysis of financial statements is carried out by the user according to the financial statements without preliminary transformation of its indicators or with a preliminary transformation of reporting indicators. Conversion of indicators of accounting (financial) statements can be carried out by regrouping homogeneous indicators, i.e. aggregation of balance sheet items.

Thus, any analysis is carried out for a specific purpose, so you always need to clearly remember what questions we want to get answers to as a result of express analysis. There is no strictly defined set of coefficients; the analyst's task is to determine the set that will fully allow answering the questions posed before starting the calculations. When conducting an express analysis, there is no need to analyze all the articles, it is enough to pay attention only to problematic balance sheet items.

The purpose of analyzing the financial statements of a third-party company is to assess its creditworthiness, solvency and investment attractiveness. This data is needed to make important management decisions. But everyone has their own method of analysis. Read about the method of express analysis of financial statements in this article.

The method of express analysis of financial statements is used in conditions of limited primary information and limited time frames. This is his feature. Despite the fact that any financial statements have certain limitations, often only the information contained in Form No. 1 (balance sheet) and Form No. 2 (profit and loss statement) of financial statements is available.

Let's analyze the methodology for analyzing the financial condition of an organization using a specific example. We have at our disposal an annual balance sheet (table no. 1) and a profit and loss statement (table no. 2) of Delta company.

The purpose of the analysis of financial reporting indicators is to determine how great the risks of cooperation with a given company are when it is included in the group, how useful the accounting data can be, and what conclusions about the company can be made based on the data available in these two forms.

Express analysis of financial statements

Until the start of any calculations, let's just look at the reporting items, and conduct a visual comparison of the data of the current period with the past and identify problem items.

Table. Analysis of financial reporting indicators

Section / Article	conclusions
	Increasing the number	Decrease the number
Fixed assets	Most likely, this indicates the acquisition of property or investment in construction. If there has been a significant increase in any of the articles of this section, it is necessary to pay attention to the liabilities in order to establish at the expense of what funds (own / borrowed (long-term or short-term)) these capital investments were made.	A decrease can mean both the sale of fixed assets and the accrual of depreciation, that is, the physical obsolescence of fixed assets.
If a as part of non-current assets there is unfinished construction, it must be borne in mind that these assets can be of value only if investments in construction are continued. If due to the crisis investments are frozen, the real the value of these assets will be significantly lower than the balance sheet.
Let's look at our example, as we see the section of non-current assets is represented by the item "fixed assets", over the year the value of the item decreased slightly, on the basis of this we can conclude that most likely the company did not buy new and did not sell old fixed assets, and the decrease occurred in as a result of depreciation on existing fixed assets.
Current assets. Stocks	A large amount of stocks and their annual growth may indicate an overstocking.	A regular decrease in inventories may indicate both a decrease in business activity, that is, a curtailment of activities, and a lack of working capital to purchase the required amount of inventory.
In the second section of the balance sheet, you need to pay attention to such an item as VAT on purchased values. If the amount of tax reflected under this item is large enough and continues to increase, then it is highly likely that the company has some reason to reduce tax payments (non-submission of VAT to be refunded from the budget). These reasons can be: unsatisfactory organization of document flow in the company, low quality of tax accounting, purchase of goods (products) at inflated prices or from unreliable suppliers. The tax risks of such a company should be considered high.
Receivables. This balance sheet item is best viewed in conjunction with the revenue indicator from Form 2.	If an increase in accounts receivable is associated with an increase in sales, then we can conclude that the growth in the company's revenue was provided by a change in the company's credit policy - an increase in the term for granting a commodity loan. If the increase occurs against the background of a decrease in revenue, then we can conclude that despite the change in credit policy for the better for customers, the company failed to retain its customers. This indicates an increase in the company's operational risks.	If the decrease in this item occurs against the background of an increase in revenue, then we can conclude that the company's buyers began to pay their bills earlier, that is, there was a decrease in the grace period or part of the goods is paid for in advance (and the buyers accepted this change in credit policy). If the revenue of the company decreased, then the debt of buyers decreased accordingly.
As part of accounts receivable there may also be paid advances related to the construction or acquisition of fixed assets, that is, such "receivables" in the future will turn into either fixed assets or construction in progress, but not cash.
Cash.	Both the increase and decrease in the numerical indicator for this article does not allow us to draw any meaningful conclusions.
Let's look at the second section of our balance sheet. The most significant amount is made up of reserves, their value has increased. Since we cannot say good or bad, it is necessary to continue further analysis on this article, that is, to conduct a vertical analysis and calculate the turnover ratio ... The value added tax not shown for deduction at the end of the year amounted to more than 17 million rubles, and this amount increased compared to the previous period, based on this, it can be concluded that the company has tax risks. Accounts receivable increased on the back of a decline in revenue. Further analysis is needed on this article.
Capital and reserves. Authorized capital.	As a rule, a change under this article occurs only if there was a re-registration of the company associated with an increase / decrease in the authorized capital for any reason (including a change of owner).
Retained earnings (uncovered loss).	At this stage of the analysis, we are looking at the availability of the amount for this item, if a loss is reflected, then this item is classified as problematic. For a more detailed analysis of the data presented in the balance sheet is not enough.
The authorized capital of the company we are analyzing has not changed; the amount of retained earnings has increased, which means that the company's own capital has also increased.
Credits and loans.	Based on the balance sheet, we can state that the company has short-term or long-term loans, whether their amount has increased or decreased. There is not enough information at this stage for any conclusions about the validity of attracting credit resources and their effectiveness.
The short-term borrowed funds of the company we analyzed increased.
Accounts payable. We analyze by type of debt.	An increase in indebtedness to suppliers may indicate both a delay in payments, that is, a breach by the company of its payment obligations, and the existence of agreements to increase the grace period as a result of maintaining the volume of purchases, payment on time, and the presence of good relationships. An increase in debt to tax authorities may indicate an increase in the company's tax risk.	The decrease in the "creditor" may indicate both a tighter credit policy of suppliers and the early fulfillment by the company of its payment obligations. The decrease in tax arrears shows both the timeliness of the fulfillment of tax obligations and a lower tax charge due to a decrease in business activity.
Accounts payable the analyzed company has grown, mainly due to an increase in debt to suppliers, as well as an increase in tax liabilities. The increase in accounts payable occurred against the background of an increase in the company's inventories. Based on this, a preliminary conclusion can be made that most likely the purchased stocks were purchased with a deferred payment and the payment deadline at the time of reporting was not yet. For a more complete analysis, it is necessary to look at the change in the structure of obligations, that is, to calculate the share of the creditors and analyze the turnover. That is, for more reasonable conclusions on the financial condition of the company, we need vertical analysis and analysis of coefficients.

Balance sheet data also allow a preliminary assessment of the company's solvency at the reporting date. To do this, compare the cost of working capital with the value of short-term liabilities (722426-694696 \u003d 27730), the result obtained can be called the “safety margin” of the firm in terms of solvency.

Vertical and horizontal analysis of financial statements

When analyzing form 2, it is better to resort to horizontal and vertical analysis.

Horizontal analysis involves a comparison of each item with the previous period. Vertical analysis of the financial statements of the enterprise concerns the structure of financial indicators with the identification of the impact of each item on the result.

It is necessary to pay attention to the following points: if revenue has increased, then an increase cost of goods (products) sold - normal, but if an increase in the cost of goods sold and administrative expenses occurred against the background of a decrease in revenue or its unchanged, this should alert the analyst, since if this trend continues in the future, the company may have problems with business efficiency.

Calculated data, as well as forms of balance sheet and profit and loss statement are presented in tables 1, 2

Current (current) assets in their amount exceeded current (short-term) liabilities by 14,390 thousand rubles. (682128-667738) in 2014 and by 27730 thousand rubles. (722426-694696) in 2015, which clearly indicates the company's solvency. However, not all so simple. As you can see, the company's property includes such items as deferred expenses and value added tax on acquired values. Moreover, the balances under these items are increasing. Imagine a situation that in a certain period of time a company will have to urgently pay off all its obligations to creditors, and it is forced to sell its current assets. Deferred expenses cannot be sold, they are not property, therefore, in my opinion, it seems reasonable enough not to take this article into account when determining the company's solvency.

The situation is similar with the "input" VAT: what is the probability of its being reimbursed from the budget if it has not been reimbursed to date? There can be two approaches here, let's call them conservative and loyal. Taking a conservative approach, I recommend not considering the amount of input VAT when analyzing a company's solvency and liquidity. With a more loyal approach, it is possible to reduce the amount of liabilities for tax payments by the amount of "input" VAT. If the amount of "input" VAT exceeds the amount of tax liabilities (as in our example), I suggest not taking into account the remaining amount of VAT in the calculations. There is also a reasonable explanation for this approach: VAT refunds from the budget are quite long in time (only 90 days are allotted for a cameral tax audit) and is associated with the emergence of additional tax risks and, which is not excluded, legal proceedings.

Table 3. Change in the company's solvency, taking into account the above comments

Indicators	Conservative approach		Loyal approach
	year 2014	2015 year	year 2014	2015 year
Current assets	682128	722426	682128	722426
minus prepaid expenses	1415	2600	1415	2600
minus "input" VAT	16580	17044	16580	17044
\u003d Current Assets (TA)	664133	702782	664133	702782
short-term obligations	667738	694696	667738	694696
minus tax arrears	–	–	2638	5964
\u003d Current liabilities (TO)	667738	694696	665100	688732
Difference between TA and TO	-3605	8086	-967	14050

As you can see, in both the first and second approaches, the company's solvency in 2015 improved significantly.